新编金融英语教程 Chapter1 Money

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[教材]高等院校金融英语教科书第一单元翻译

货币（Money）1,1货币的定义：货币是指在支付购买商品和服务的款项方面以及在清偿债务方面为人们所普遍接受的事物。

currency(指纸币和硬币)显然符合这一定义，是money的一种类型。

然而，money仅仅是被定义为currency对于现在的人们来说太狭隘了，因为事实上不仅可以通过currency(货币，指硬币和纸币)进行支付，还可以通过支票转账和电子转账来进行支付。

因此，支票也作为被接受的用于购买的支付工具，支票账户存款也被认为是种货币。

有时，就有必要使用货币（money）的广义定义，因为如果money可以很便捷的转换为currency,那么像储蓄存款等实际上也可以发挥货币的作用。

1.2货币的类型1.2.1商品货币：商品货币或者实物货币是一种其价值来源于制作商品的货币，制作商品货币或实物货币的商品本身也拥有价值同时也可作为货币来使用。

曾被用来作为交换媒介的商品有金、银、铜、盐、大的石头、装饰的腰带、贝壳、酒、烟、大麦等。

实际上，在过去的4000年期间，主要的商品货币是贵金属：大多数是银、金，也称为足值货币，贵金属货币阶段是商品货币的阶段之一。

几乎所有的国家都曾经经历过贵金属货币（是货币的一种完美的形式）阶段。

1.2.2代用货币：代用货币或者代用足值货币是指完全有贵金属作为支持的货币。

代用货币的价值与商品有着直接固定的关系，然而它们本身并不是由商品构成。

在20世纪30年代，经济与金融危机爆发，纸币不再能兑换为贵金属，金本位制或者银本位制瓦解，主要的西方国家不得不脱离金属本位制。

因此，纸币不能再被兑换为黄金。

自那时开始，代用货币退出流通领域，信用货币就出现了。

1.2.3信用货币：信用货币既不是由特定的有价值的商品构成的也不代表特定的有价值的商品。

信用货币的价值取决于其普遍接受程度（而普遍接受程度又是以发行者的信用为基础的），信用货币是通过信用流程发行的。

信用货币有两个特征：一是和贵金属的联系，另一个其价值是基于国家政府和银行的信用。

金融英语课件(unit 1)

教学重点(Emphases and difficult points）：
some important vocabulary: banknote, joint stock company, acquisition, monetary polices, lender of last resort, liquidity, bank run, IMF, IBRD, financial institution, etc.; transformation, empower, directives, comply (with), implement, oversee, supervisory, registration ；the understanding about the history and function of the Bank of England. the brief knowledge of the banking system in China. Some specialized English words.
Exercises and Key to Exercises

（1）1.英格兰银行 Bank of England 2.银行营业部 Banking Department 3.股份公司joint stock company 4.接受存款机构 deposit-talking institution 5.规章制度 rules and regulations 6.执行货币政策 implement monetary policy 7.贴现行 discount house 8.公众利益 public interest 9.国际货币基金组织 International Monetary policy 10.世界银行 World Bank （2）ACBCD (3) Some questions: What are the functions of the central bank? When was the Bank of England founded?

金融专业英语 Unit 1 Money

Learning Targets
After learning this unit, you will be able to: understand the general definition of money; explain the functions of money; explain the forms of money; describe the contents of monetary system.
0 9 International Financing
1 0 Financial Derivatives
1 1 International Financial Institution
12
International Banking Regulatory Framework
Unit 1 Money
1.1 Introduction 1.2 Functions of Money 1.3 Forms of Money 1.4 Monetary System
1.1.1 History of Money
简单或偶然的价值形式
扩大的价值形式
一般价值形式
货币形式
Simple or Accidental Expanded Form of
Form of Value
Value
General Form of Value
Currency Form
1.1.1.1 Simple or Accidental Form of Value
1.1 Introduction
1.1.1 History of Money
Human society has existed for millions of years, but the emergence of money is only a few thousand years. There are many theories about the origin of money in history, but none of them have formed a complete theoretical system. Until Marx, from the view of dialectical materialism (辩证唯物主义) and historical materialism (历史唯物主义), explained the essence of money— the labor theory of value (劳动价值论). Marx believed that money originated from commodity exchange, and its economic root was private ownership. It was formed spontaneously in the process of commodity exchange.

Financial English 金融英语教程chapter 1 money-张铁军教材版本

1. Simple Interest I=PRn S=P+I=P(I+Rn)
2. Compound Interest S=P(I+R)n I=S-P
Page 24
1.4.2 Nominal and Real Interest Rates
1. The definition of nominal interest. P7, 1.4.2, L1-2 2. The definition of real interest. P7, 1.4.2, L3-4
Page 2
Benefits
Financial English course will provide you with:
- Greater confidence when discussing financial documents and data
- Increased verbal fluency for face-to-face negotiations
Assignment
20%
Exam
50%
Total
100%
Page 4
Part 1 Money
1. Definition of Money 2. Types of Money 3. Functions of Money 5. Interest and Interest Rate 6. Money Supply 7. China’s Monetary System
Page 5
Chapter 1 Money
Professional Terms
1．monetary area货币区货币区是货币一体化的较高层次，它是指成员国之间的货
币建立紧密联系的地理区域。货币区的初级阶段是固定汇率制度，包括货币局制度和美

120新编金融英语教程

Money, as a repository of purchasing power over time, also functions as a store of value. It is an asset which can be used to store value for the future. When we don’t consume the money now, we can save it and transfer the consumption power to some point in the future.Chapter 1 NhomakorabeaMoney
CONTENTS
1.1 L e a d - i n 1.2 K e y Po i n t s 1.3 L a n g u a g e N o t e s 1.4 F o l l o w - u p Ta s k s 1.5 E x t e n d e d Ta s k s
M1
M1 is the measure that corresponds most closely to the definition of money. It consists of currency held by the public and checkable deposits.
M2
M2 consists of everything in M1 plus some highly liquid assets which can be converted to the items in M1 very easily without the loss of value for the principal. The other highly liquid assets are small savings, time deposits, MMDAs, and individual money market mutual funds.

财经英语ChapterOneMoney

Chapter One MONEYWarming upLook at the pictures above and try to answer the following questions.1.What do the pictures show?2.How many stages of development can you recognize from the pictures shown above?3.What are the advantages and disadvantages of the different forms of monies? Text AWHAT IS MONEYP1 If you had lived in America before the Revolutionary War, your money might have consisted primarily of Spanish doubloons (silver coins that were also called pieces of eight). Before the Civil War, the principal forms of money in the United States were gold and silver coins and paper notes, called banknotes, issued by private banks. Today, you use not only coins and dollar bills issued by the government as money, but also checks written on accounts held at banks. Money has been different things at different times, but it has always been important to people and to the economy.P2 To understand the effects of money on the economy, we must understand exactly what money is. In this chapter, we develop precise definitions by exploring the functions of money, looking at why and how it promotes economic efficiency, tracing how its forms have evolved over time, and examining how money is currently measured.1.Meaning of moneyP3 As the word money is used in everyday conversation, it can mean many things, but to economists, it has a very specific meaning. To avoid confusion, we must clarifyhow economists’ use of the word money differs from conventional usage.P4 Economists define money (also referred to as the money supply) as anything that is generally accepted in payment for goods or services or in the repayment of debts. Currency, consisting of dollar bills and coins, clearly fits this definition and is one type of money. When most people talk about money, they’re talking about currency (paper money and coins). If, for example, someone comes up to you and says, “Your money or your life,” you should quickly hand over all your currency rather than ask, “What exactly do you mean by ‘money’?”P5 To define money merely as currency is much too narrow for economists. Because checks are also accepted as payment for purchases, checking account deposits are considered money as well. An even broader definition of money is often needed, because other items such as savings deposits can, in effect, function as money if they can be quickly and easily converted into currency or checking account deposits. As you can see, no single, precise definition of money or the money supply is possible, even for economists.P6To complicate matters further, the word money is frequently used synonymously with wealth. When people say, “Joe is rich—he has an awful lot of money,”they probably mean that Joe not only has a lot of currency and a high balance in his checking account but also has stocks, bonds, four cars, three houses, and a yacht. Thus, while“currency”is too narrow a definition of money, this other popular usage is much tooP7broad. Economists make a distinction between money in the form of currency, demand deposits, and other items that are used to make purchases and wealth, the total collection of pieces of property that serve to store value. Wealth includes not only money but also other assets such as bonds, common stock, art, land, furniture, cars, and houses.2.Functions of MoneyP8Whether money is shells or rocks or gold or paper, it has three primary functions in any economy: as a medium of exchange, as a unit of account, and as a store of value. Of the three functions, its function as a medium of exchange is what distinguishes money from other assets such as stocks, bonds, and houses.2.1 Medium of ExchangeP9In almost all market transactions in our economy, money in the form of currency or checks is a medium of exchange; it is used to pay for goods and services. The use of money as a medium of exchange promotes economic efficiency by minimizing the time spent in exchanging goods and services. To see why, let’s look at a barter economy, one without money, in which goods and services are exchanged directly for other goods and services.P10Take the case of Ellen the Economics Professor, who can do just one thing well: give brilliant economics lectures. In a barter economy, if Ellen wants to eat, she must find a farmer who not only produces the food she likes but also wants to learn economics. As you might expect, this search will be difficult and time-consuming, and Ellen might spend more time looking for such an economics-hungry farmer than she will teaching. It is even possible that she will have to quit lecturing and go into farming herself. Even so, she may still starve to death.P11The time spent trying to exchange goods or services is called a transaction cost. In a barter economy, transaction costs are high because people have to satisfy a “double coincidence of wants”—they have to find someone who has a good or service they want and who also wants the good or service they have to offer.P12Let’s see what happens if we introduce money into Ellen the Economics Professor’s world. Ellen can teach anyone who is willing to pay money to hear her lecture. She can then go to any farmer (or his representative at the supermarket) and buy the food she needs with the money she has been paid. The problem of the double coincidence of wants is avoided, and Ellen saves a lot of time, which she may spend doing what she does best: teaching.P13As this example shows, money promotes economic efficiency by eliminating much of the time spent exchanging goods and services. It also promotes efficiency by allowing people to specialize in what they do best. Money is therefore essential in an economy: It is a lubricant that allows the economy to run more smoothly by lowering transaction costs, thereby encouraging specialization and division of labor.P14The need for money is so strong that almost every society beyond the most primitive invents it. For a commodity to function effectively as money, it has to meet several criteria: (1) It must be easily standardized, making it simple to ascertain its value; (2) it must be widely accepted; (3) it must be divisible, so that it is easy to “make change”; (4) it must be easy to carry; and (5) it must not deteriorate quickly. Objects that have satisfied these criteria have taken many unusual forms throughout human history, ranging from wampum (strings of beads) used by Native Americans; to tobacco and whiskey, used by the early American colonists; to cigarettes, used in prisoner-of-war camps during World War II. The diverse forms of money that have been developed over the years is as much a testament to the inventiveness of the human race as the development of tools and language.2.2 Unit of AccountP15The second role of money is to provide a unit of account; that is, it is used to measure value in the economy. We measure the value of goods and services in terms of money, just as we measure weight in terms of pounds or distance in terms of miles. P16 To see why this function is important, let’s look again at a barter economy, in which money does not perform this function. If the economy has only three goods—say, peaches, economics lectures, and movies—then we need to know only three prices to tell us how to exchange one for another: the price of peaches in terms of economics lectures (that is, how many economics lectures you have to pay for a peach), the price of peaches in terms of movies, and the price of economics lectures in terms of movies. If there were 10 goods, we would need to know 45 prices to exchange one good for another; with 100 goods, we would need 4,950 prices; and with 1,000 goods, 499,500 prices.P17 Imagine how hard it would be in a barter economy to shop at a supermarket with 1,000 different items on its shelves and be faced with deciding whether chicken or fish is a better buy if the price of a pound of chicken were quoted as 4 pounds of butter and the price of a pound of fish as 8 pounds of tomatoes. To make it possible to compare prices, the tag on each item would have to list up to 999 different prices, and the time spent reading them would result in very high transaction costs.P18 The solution to the problem is to introduce money into the economy and have all prices quoted in terms of units of that money, enabling us to quote the price of economics lectures, peaches, and movies in terms of, say, dollars. If there were only three goods in the economy, this would not be a great advantage over the barter system, because we would still need three prices to conduct transactions. But for 10 goods we would need only 10 prices; for 100 goods, 100 prices; and so on. At the 1,000-goods supermarket, now only 1,000 prices need to be looked at, not 499,500!P19 We can see that using money as a unit of account lowers transaction costs in an economy by reducing the number of prices that need to be considered. The benefits of this function of money grow as the economy becomes more complex.2.3 Store of ValueP20Money also functions as a store of value; it is a repository of purchasing power over time. A store of value is used to save purchasing power from the time income is received until the time it is spent. This function of money is useful, because most of us do not want to spend our income immediately upon receiving it, but rather prefer to wait until we have the time or the desire to shop.P21Money is not unique as a store of value; any asset—whether money, stocks, bonds, land, houses, art, or jewelry—can be used to store wealth. Many such assets have advantages over money as a store of value: They often pay the owner a higher interest rate than money, experience price appreciation, and deliver services such as providing a roof over one’s head. If these assets are a more desirable store of value than money, why do people hold money at all?P22The answer to this question relates to the important economic concept of liquidity, the relative ease and speed with which an asset can be converted into a medium of exchange. Liquidity is highly desirable. Money is the most liquid asset of all becauseit is the medium of exchange; it does not have to be converted into anything else to make purchases. Other assets involve transaction costs when they are converted into money. When you sell your house, for example, you have to pay a brokerage commission (usually 4–6% of the sales price), and if you need cash immediately to pay some pressing bills, you might have to settle for a lower price if you want to sell the house quickly. Because money is the most liquid asset, people are willing to hold it even if it is not the most attractive store of value.P23How good a store of value money is depends on the price level. A doubling of all prices, for example, means that the value of money has dropped by half; conversely, a halving of all prices means that the value of money has doubled. During inflation, when the price level is increasing rapidly, money loses value rapidly, and people will be more reluctant to hold their wealth in this form. This is especially true during periods of extreme inflation, known as hyperinflation, in which the inflation rate exceeds 50% per month.P24 Hyperinflation occurred in Germany after World War I, with inflation rates sometimes exceeding 1,000% per month. By the end of the hyperinflation in 1923, the price level had risen to more than 30 billion times what it had been just two years before. The quantity of money needed to purchase even the most basic items became excessive. There are stories, for example, that near the end of the hyperinflation, a wheelbarrow of cash would be required to pay for a loaf of bread. Money was losing its value so rapidly that workers were paid and given time off on several occasions during the day to spend their wages before the money became worthless. No one wanted to hold on to money, so the use of money to carry out transactions declined and barter became more and more dominant. Transaction costs skyrocketed, and, as we would expect, output in the economy fell sharply.3.Evolution of the Payments SystemP25We can obtain a better picture of the functions of money and the forms it has taken over time by looking at the evolution of the payments system, the method of conducting transactions in the economy. The payments system has been evolving over centuries, and with it the form of money. At one point, precious metals such as gold were used as the principal means of payment and were the main form of money. Later, paper assets such as checks and currency began to be used in the payments system and viewed as money. Where the payments system is heading has an important bearing on how money will be defined in the future.3.1 Commodity MoneyP26To obtain perspective on where the payments system is heading, it’s worth exploring how it has evolved. For any object to function as money, it must be universally acceptable; everyone must be willing to take it in payment for goods and services. An object that clearly has value to everyone is a likely candidate to serve as money, and a natural choice is a precious metal such as gold or silver. Money made upof precious metals or another valuable commodity is called commodity money, and from ancient times until several hundred years ago, commodity money functioned as the medium of exchange in all but the most primitive societies. The problem with a payments system based exclusively on precious metals is that such a form of money is very heavy and is hard to transport from one place to another. Imagine the holes you’d wear in your pockets if you had to buy things only with coins! Indeed, for large purchases such as a house, you’d have to rent a truck to transport the money payment.3.2 Fiat MoneyP27The next development in the payments system was paper currency (pieces of paper that function as a medium of exchange). Initially, paper currency carried a guarantee that it was convertible into coins or into a fixed quantity of precious metal. However, currency has evolved into fiat money, paper currency decreed by governments as legal tender (meaning that legally it must be accepted as payment for debts) but not convertible into coins or precious metal. Paper currency has the advantage of being much lighter than coins or precious metal, but it can be accepted as a medium of exchange only if there is some trust in the authorities who issue it and if printing has reached a sufficiently advanced stage that counterfeiting is extremely difficult. Because paper currency has evolved into a legal arrangement, countries can change the currency they use at will. Indeed, this is what many European countries did when they abandoned their currencies for the euro in 2002.P28Major drawbacks of paper currency and coins are that they are easily stolen and can be expensive to transport in large amounts because of their bulk. To combat this problem, another step in the evolution of the payments system occurred with the development of modern banking: the invention of checks.3.3 ChecksP29 A check is an instruction from you to your bank to transfer money from your account to someone else’s account when she deposits the check. Checks allow transactions to take place without the need to carry around large amounts of currency. The introduction of checks was a major innovation that improved the efficiency of the payments system. Frequently, payments made back and forth cancel each other; without checks, this would involve the movement of a lot of currency. With checks, payments that cancel each other can be settled by canceling the checks, and no currency need be moved. The use of checks thus reduces the transportation costs associated with the payments system and improves economic efficiency. Another advantage of checks is that they can be written for any amount up to the balance in the account, making transactions for large amounts much easier. Checks are also advantageous in that loss from theft is greatly reduced and because they provide convenient receipts for purchases.P30 Two problems arise, however, with a payments system based on checks. First, it takes time to get checks from one place to another, a particularly serious problem ifyou are paying someone in a different location who needs to be paid quickly. In addition, if you have a checking account, you know that it often takes several business days before a bank will allow you to make use of the funds from a check you have deposited. If your need for cash is urgent, this feature of paying by check can be frustrating. Second, the paper shuffling required to process checks is costly; currently, the cost of processing all checks written in the United States is estimated at over $10 billion per year.3.4 Electronic PaymentP31The development of inexpensive computers and the spread of the Internet now make it cheap to pay bills electronically. In the past, you had to pay bills by mailing a check, but now banks provide websites at which you just log on, make a few clicks, and thereby transmit your payment electronically. Not only do you save the cost of the stamp, but paying bills becomes (almost) a pleasure, requiring little effort. Electronic payment systems provided by banks now even spare you the step of logging on to pay the bill. Instead, recurring bills can be automatically deducted from your bank account. Estimated cost savings when a bill is paid electronically rather than by a check exceed one dollar per transaction. Electronic payment is thus becoming far more common in the United States.3.5 E-MoneyP32Electronic payments technology can substitute not only for checks but also for cash, in the form of electronic money (or e-money)—money that exists only in electronic form. The first form of e-money was the debit card. Debit cards, which look like credit cards, enable consumers to purchase goods and services by electronically transferring funds directly from their bank accounts to a merchant’s account. Debit cards are used in many of the same places that accept credit cards and are now often becoming faster to use than cash. At most supermarkets, for example, you can swipe your debit card through the card reader at the checkout station, press a button, and the amount of your purchases is deducted from your bank account. Most banks and companies such as Visa and Master-Card issue debit cards, and your ATM card typically can function as a debit card.P33A more advanced form of e-money is the stored-value card. The simplest form of stored-value card is purchased for a preset dollar amount that the consumer pays up front, like a prepaid phone card. The more sophisticated stored-value card is known as a smart card. It contains a computer chip that allows it to be loaded with digital cash from the owner’s bank account whenever needed. In Asian countries, such as Japan and Korea, cell phones now have a smart card feature that raises the expression “pay by phone” to a new level. Smart cards can be loaded from ATM machines, personal computers with a smart card reader, or specially equipped telephones.P34A third form of electronic money is often referred to as e-cash, which is used on the Internet to purchase goods or services. A consumer gets e-cash by setting up anaccount with a bank that has links to the Internet and then has the e-cash transferred to her PC. When she wants to buy something wiThe-cash, she surfs to a store on the Web and clicks the “buy”option for a particular item, whereupon the e-cash is automatically transferred from her computer to the merchant’s computer. The merchant can then have the funds transferred from the consumer’s bank account to his before the goods are shipped.P35Given the convenience of e-money, you might think that we would move quickly to a cashless society in which all payments are made electronically. However, this hasn’t happened.4. Measuring MoneyP36The definition of money as anything that is generally accepted in payment for goods and services tells us that money is defined by people’s behavior. What makes an asset money is that people believe it will be accepted by others when making payment. As we have seen, many different assets have performed this role over the centuries, ranging from gold to paper currency to checking accounts. For that reason, this behavioral definition does not tell us which assets in our economy should be considered money. To measure money, we need a precise definition that tells us exactly which assets should be included.The Federal Reserve’s Monetary AggregatesP37The Federal Reserve System (the Fed), the central banking authority responsible for monetary policy in the United States, has conducted many studies on how to measure money. The problem of measuring money has recently become especially crucial because extensive financial innovation has produced new types of assets that might properly belong in a measure of money. Since 1980, the Fed has modified its measures of money several times and has settled on the following measures of the money supply, which are also referred to as monetary aggregates (see Table 1).P38The narrowest measure of money that the Fed reports is M1, which includes the most liquid assets: currency, checking account deposits, and traveler’s checks. The components of M1 are shown in Table 1. The currency component of M1 includes only paper money and coins in the hands of the nonbank public and does not include cash held in ATMs or bank vaults. Surprisingly, more than $3,000 cash is in circulation for each person in the United States. The traveler’s checks component of M1 includes only traveler’s checks not issued by banks. The demand deposits component includes business checking accounts that do not pay interest, as well as traveler’s checks issued by banks. The other checkable deposits item includes all other checkable deposits, particularly interest-bearing checking accounts held by households. These assets are clearly money because they can be used directly as a medium of exchange.P39Until the mid-1970s, only commercial banks were permitted to establish checkingaccounts, and they were not allowed to pay interest on them. With the financial innovation that has occurred, regulations have changed so that other types of banks, such as savings and loan associations, mutual savings banks, and credit unions, can also offer checking accounts. In addition, banking institutions can offer other checkable deposits, such as NOW (negotiated order of withdrawal) accounts and ATS (automatic transfer from savings) accounts, which do pay interest on their balances.P40 The M2 monetary aggregate adds to M1 other assets that are not quite as liquid as those included in M1: assets that have check-writing features (money market deposit accounts and money market mutual fund shares) and other assets (savings deposits and small-denomination time deposits) that can be turned into cash quickly at very little cost. Small-denomination time deposits are certificates of deposit with a denomination of less than $100,000 that can be redeemed only at a fixed maturity date without a penalty. Savings deposits are nontransaction deposits that can be added to or taken out at any time. Money market deposit accounts are similar to money market mutual funds, but are issued by banks. The money market mutual fund shares are retail accounts on which households can write checks.Table 1[Frederic S. Mishkin. The Economics of Money, Banking, and Financial Markets, 10The d., Chapter 3 What Is Money? 2013, pp.52-59]Listening Signpost words/phrases to listen forWhether in a lecture or a speech, there is much information and it’s impossible (nor is it necessary) for an English-as-a-foreign-language (EFL) student to understand every single word and phrase used by the lecturer or the speaker. Being able to listen for and catch certain signal words and phrases may help an EFL student to better get the big picture and the key points of the lecture or speech.There are two types of signal words and phrases often used by a speaker to either summarize the point(s) already elaborated or wake up and attract (or re-attract) the attention of the audience. These signal words and phrase include, but not limited to, so, therefore, but you know what, let me show you something, etc. Once these words and phrases are used, the audiences will know what comes next will be a brief summary or repetition and clarification of some previously mentioned point(s), or something important such as a new point of view, or a piece of evidence, or a keen observation, etc.Task 1 Watch the video titled Hidden Secrets of Money, from 9:00 minutes to 21:00 minutes. Listen for and write down the signpost words and phrases you have got and appreciate their function in the talk.Task 2 Below is a summary of the designated part of the video on money. Please fill in the missing words from the video.The American dollar is viewed as unreliable as __________(1) of value because it has lost much of its purchasing power since its creation as __________(2) money in 1913. It’s not backed by gold like it used to be in the past. Actually it becomes a __________(3) check against nothing. Instead of maintaining value, the dollar is said to be a __________(4), and __________(5) away people’s wealth, their purchasing power. On the other hand, __________(6) is praised as the _________(7) form of gold because it is divisible, permanent, and cannot be manipulated.Inflation is the result of __________(8) currency supply. With the __________(9) system replaced with a single currency, and without the constraint of gold, every government is racing to increase their ___________(10) currency by printing money to allow for deficit spending and bailouts of troubled institutions. As a result, inflation runs out of control and leads to revolutions in certain parts of the world.ReadingTask 1Read the text and choose the best answer from the choices for the following questions.1.The example of “Your money or your life” in para.? is meant toA.warn readers of the danger of taking currency while going out.B.point out a setback of coins and paper money.C.demonstrate how people understand money in daily life.D.suggest that economist would respond differently from common people in such a situation.2.Which of the following is NOT a purpose of the example of “Joe is rich--he has an awful lot of money” in para. ?? toA.show that people sometimes confuse money with wealth.B.disapprove a certain definition of money.C.give the word richness a new definition.D.clarify the differences between money and wealth.3.The author mentions the barter economy in para.?? mainly toA.prove that ancient people aren’t as smart as people today.B.explain the necessity of introducing a better form of exchange.C.indicate that barter should have never been used by any society.D.imply that the more specialized people are, the cheaper products will be.4.Which of the following statements about money as a store of value is the LEAST likely to be true ?A.Money is the most attractive form of store of value.B.A person who is bullish on gold may not want to hold money as a store of value.C.A person expecting deflation may want to hold on to his/her money.D.Rapid price increases may lead people to lose confidence in money as a store of value.5.In Where the payments system is heading has an important bearing on how money will be defined in the future in para.25, the word “bearing” is closest in meaning to which of the following words?A.enduranceB.supportC.mannerD.interconnection6.Which of the following is NOT one of the prerequisites to fiat money?A.advanced printing technologyB.confidence in the issuing authoritiesC.Convertibility into precious metalsernment order7.The first form of e-money isA.credit cardsB.debit cardsC.stored-valued cards。

金融英语 chapter 1 money

Course Structure
• Chapter 1 Money, the Functions of Money and the Financial System • Chapter 2 The Banking system • Chapter 3 Interest Rate and Interest Rate Policies • Chapter 4 Money Market
• 铸币税（Seigniorage） • 也称为“货币税”。发行货币的组织或国家的政府可以不需任何补偿地用纸制货币向自己的居民换取实际经济资源，从中攫取发行货币所产生的特定收益。这部分由货币发行主体垄断性地享受 “通货币面价值超出生产成本”的收益，就被定义为“铸币税”。Professional源自TermsQuestion
• When you buy a pair of jeans or a CD, for example, you never wonder whether the merchant will accept the bills and coins in your wallet as payment. • But suppose money didn't exist. How would you pay for the things you want to buy?
• 45．fund obligation基金负担
• 基金负担或称基金总数是指当时发行在外的基金的总量
Professional Terms
• 58．monetary ease银根松动 • 银根monetary situation 指金融市场上的资金供应。因中国1935年法币改革以前曾采用银本位制，市场交易一般都用白银，所以习惯上称资金供应为银根。 • 银根有紧松之分，判断依据是资金供需状况。如果市场上资金供不应求，称为 “银根紧俏”或“银根紧”；市场上资金供过于求，称为“银根松疲”或“银根松”

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( ) 1. a means of payment ( ) 2. checkable deposits ( ) 3. payment tool ( ) 4. debt repayments ( ) 5. common stock ( ) 6. liquid assets ( ) 7. near monies ( ) 8. a given point in time ( ) 9. stock of money ( ) 10. financial claims
Chapter 1
Money
CONTENTS
1.1 L e a d - i n 1.2 K e y Po i n t s 1.3 L a n g u a g e N o t e s 1.4 F o l l o w - u p Ta s k s 1.5 E x t e n d e d Ta s k s
• depository institutions
the U.S. Treasury 美国财政部
• fiat money
unit of account计量单位
• financial claim
• medium of exchange
• monetary aggregate
• money market deposit accounts (MMDAs)
Money, as a repository of purchasing power over time, also functions as a store of value. It is an asset which can be used to store value for the future. When we don’t consume the money now, we can save it and transfer the consumption power to some point in the future.
A. 债务偿还 B. 普通股 C. 一种支付手段 D. 金融要求权 E. 可支取的存款账户 F. 一个给定的时间点 G. 货币存量 H. 支付工具 I. 流动资产 J. 准货币
1.4 Follow-up Tasks
II. Judgments Directions: Decide whether each of the following statements is true (T) or false (F).
M1
M1 is the measure that corresponds most closely to the definition of money. It consists of currency held by the public and checkable deposits.
M2
M2 consists of everything in M1 plus some highly liquid assets which can be converted to the items in M1 very easily without the loss of value for the principal. The other highly liquid assets are small savings, time deposits, MMDAs, and individual money market mutual funds.
1.1Lead-in
In this chapter, we will first of all examine the definition of money, then introduce the meaning of monetary aggregate, and finally discuss the main
functions of money.
1.2 Key Points
1.2.1 Definition of Money
￥$
Money
Money is defined as anything that is commonly used to pay for goods and services.
Economists make a distinction between money in the form of currency, demand deposits, and other items that are used to make purchases and wealth, the total collection of property to store v money, but also other assets such as bonds, common stock, art, land, furniture, cars, and houses.
1.4 Follow-up Tasks
III. Short Answer Questions Directions: Answer each of the following questions briefly.
1. What assets have acted as payment tools in the history of mankind? 2. What are the differences between wealth and currency? 3. What is the relationship between M1, M2 and M3? 4. What is the major problem of making transactions by barter? 5. What are the advantages and disadvantages of money as the store of value?
1.4 Follow-up Tasks
I. Matching
Directions: Match the English words and phrases in the left column with the proper Chinese equivalents in the right column.
1.3 Language Notes
II. Phrases
• barter economy
• narrow money
• checking account
• paper money
• commodity money
• store of value
• demand deposits
• the Federal Reserve System ( the Fed)
1.3 Language Notes
III. Sentences
1. It occurred because gold and silver merchants or banks would issue receipts to their depositors – redeemable for the commodity money deposited. 2. Economists make a distinction between money in the form of currency, demand deposits, and other items that are used to make purchases and wealth, the total collection of property to store value. 3. They consist of demand deposits, which are non-interest-earning checking accounts issued by banks, and other checkable deposits, which are interest-earning checking accounts issued by some depository institutions. 4. Even though these other assets are not used to make transactions, they are all highly liquid, so they are often referred to as near monies. 5.In other words, in a barter system, the exchange can take place only if there is a double coincidence of wants between two transacting parties.
M3
M3 consists of everything in M2 plus some illiquid assets. The assets include large deposits, repurchase agreements, European dollars, institutional money, and market mutual funds.
1.M1 is not the narrowest measure of money. ( ) 2.Demand deposits are more profitable than the traveler’s checks. ( ) 3.Money market deposit accounts (MMDAs) have more checkingwriting privileges than checking accounts. ( ) 4.Not all components of M1 can be used as means of payment. ( ) 5.Only money has the store of value. ( )